Sugar To Soar Higher Due To Supply Shortage – Attractive Trading Opportunity Developing
Sugar prices rose on Wednesday after a government of Thailand agency stated that the country’s cane sugar output for the crop year 2016/2017 is expected to fall by 3.2 percent as a widespread drought has caused significant damage to existing plantations.
Thailand’s Cane and Sugar Board said that output for the next crop year would drop to 91 million tons, down from 94.05 million tons in 2015/16. The world’s second-largest sugar exporter has experienced its worst drought in more than two decades earlier this year due to the El Nino weather pattern.
A drop in output levels from Thailand has contributed to worsening a global supply deficit this year, and may fuel a rally in international prices that may push the markets beyond a four-year high.
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